Hidden in the narrative of a patent description are the details of Amazon’s awards-based advertising technology that drops the price of the merchandise as the consumer views the ad.
Based on the patent — content-based price reductions and incentives — granted in October 2017, the advertisement might include audio, video, or interactive content. In the case of video, the price on the merchandise will drop as the consumer views the ad. The idea is to allow the consumer to obtain a lower price for an item or service after receiving, listening to or viewing at least a portion of the content.
Amazon began making video ads available in March 2017, calling them Amazon Video Ads (AVAs), through the Amazon Media Group (AMG). Then came DIY ads in search results within product listings. Often, when consumers search across the marketplace the query returns a listing and a video demonstrating how to use the product.
At least one industry executive predicts these ads will begin rolling out in the summer of 2018. “Based on chatter I hear in the industry, this is coming in June or July,” said Adam Cohen-Aslatei, vice president of marketing at the Jun Group, a mobile advertising company that focuses on distributing video and branded content in apps.
Cohen-Aslatei admits this type of video advertising “puts pressure on Jun Group,” but also validates that non-interruptive types of advertising are welcome by consumers."
“EA and Zynga championed value-exchange advertising over ten years ago,” he said.
In the example of how Amazon would use video ads, the patent describes incremental price reductions such as $0.05, $0.10, $0.25, $1.00 or more throughout the video viewing experience. In this way, a customer can watch as much, or as little, as they want. The trigger also can be set to drop once at the end of the video or any other appropriate time. And, per the patent, “other fixed or variable pricing adjustments are possible."